I yes­ter­day pub­lished a short post on “When will the rally end“, quot­ing Ned Davis’s indi­ca­tors. It also makes for inter­est­ing read­ing to con­sider Bob Precther’s views. Prechter of Elliott Wave Inter­na­tional, who is often wrongly described as a per­mabear, in late Feb­ru­ary said “cover your shorts” and pre­dicted a sharp rally that would take the S&P into the 1,000 to 1,100 range. With that pre­dic­tion hav­ing come to pass, Prechter is now say­ing, as reported by Yahoo Finance, Tech Ticker, investors should “step aside” from long posi­tions, and spec­u­la­tors should “start look­ing at the short side”.

“The big ques­tion is whether the rally is over,” Prechter says, sug­gest­ing “coun­tertrend moves can be tricky” to pre­dict. But the vet­eran mar­ket watcher is “quite sure the next wave down is going to be larger than what we’ve already expe­ri­enced,” and take major aver­ages well below their March 2009 lows.

Source:  Yahoo Finance, Tech Ticker, August 11, 2009.

Dr. Prieur du Plessis is an investment professional with 26 years' experience in investment research and portfolio management. More than 1,200 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns, including his blog, Investment Postcards from Cape Town. He has also published a book, Financial Basics: Investment. Prieur is Chairman and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and a number of foreign countries. He also serves as Honorary Consul of Slovenia for South Africa, actively developing economic, cultural and scientific relations between Slovenia and South Africa. Prieur is 54 years old and live with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His leisure activities include long-distance running, traveling, reading, motor-cycling and scripophily. Read more from the author/contributor here.

Comments

Comments are closed.